S&W The Pulse Smith & Williamson LLP

As the US 10 year treasury yield tips over the symbolic 3% mark, it may mark the end of the ‘TINA’ trade (‘There Is No Alternative’). Investors that have gravitated to stock markets as bond yields dipped now have a broader range of options, particularly as inflation appears to be nearing its peak.

After a brief recovery, markets weakened in April, as inflationary pressures persisted and a resolution in Ukraine appeared remote. Economic data has weakened, but is still relatively resilient, which has provided some support to stock markets, even as interest rates rise.

In this episode we discuss why a strong tax risk management framework is critical for businesses as this should lead to a good relationship with HMRC and fewer HMRC enquiries.

Even before the Ukraine crisis emerged, markets were looking fragile. A shift in monetary policy direction from central banks in response to mounting inflationary pressures had pushed bond yields higher. This prompted a significant sector rotation in markets – away from US, growth and technology towards less rate-sensitive ‘old world’ sectors.

In this episode with Ami Jack, Head of National Tax; Luke Brooks, Managing Partner in the Financial Planning Team and Adam West Private Client Tax partner, discuss all the things you can do ahead of year end to put you in a better position.

A combination of tightening monetary policy, geopolitical tensions and rising inflation has seen markets wobble at the start of 2022. Megacap technology names have been particularly hard hit. In contrast, the UK has benefited from a stronger economic outlook and investors’ rotation into more ‘value’-focused sectors.